CELESTICA INC (CLS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CLS - CA15101Q2071 - Common Stock
302.3 USD
+13.7 (+4.75%)
295.3 USD
-7 (-2.32%)
Taking everything into account, CLS scores 7 out of 10 in our fundamental rating. CLS was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. CLS gets an excellent profitability rating and is at the same time showing great financial health properties. CLS is growing strongly while it is still valued neutral. This is a good combination! These ratings would make CLS suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
CLS had positive earnings in the past year.
CLS had a positive operating cash flow in the past year.
Each year in the past 5 years CLS has been profitable.
Each year in the past 5 years CLS had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 10.85%, CLS belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
CLS has a Return On Equity of 35.33%. This is amongst the best in the industry. CLS outperforms 96.00% of its industry peers.
With an excellent Return On Invested Capital value of 21.33%, CLS belongs to the best of the industry, outperforming 96.80% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CLS is above the industry average of 8.82%.
The last Return On Invested Capital (21.33%) for CLS is above the 3 year average (11.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.85% | ||
| ROE | 35.33% | ||
| ROIC | 21.33% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
1.3 Margins
Looking at the Profit Margin, with a value of 6.35%, CLS is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
CLS's Profit Margin has improved in the last couple of years.
CLS's Operating Margin of 7.33% is fine compared to the rest of the industry. CLS outperforms 71.20% of its industry peers.
In the last couple of years the Operating Margin of CLS has grown nicely.
CLS has a Gross Margin of 12.04%. This is in the lower half of the industry: CLS underperforms 76.00% of its industry peers.
In the last couple of years the Gross Margin of CLS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.33% | ||
| PM (TTM) | 6.35% | ||
| GM | 12.04% |
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CLS is creating value.
Compared to 1 year ago, CLS has less shares outstanding
The number of shares outstanding for CLS has been reduced compared to 5 years ago.
The debt/assets ratio for CLS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.01 indicates that CLS is not in any danger for bankruptcy at the moment.
The Altman-Z score of CLS (7.01) is better than 80.80% of its industry peers.
CLS has a debt to FCF ratio of 1.97. This is a very positive value and a sign of high solvency as it would only need 1.97 years to pay back of all of its debts.
CLS has a Debt to FCF ratio of 1.97. This is in the better half of the industry: CLS outperforms 78.40% of its industry peers.
CLS has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
CLS has a worse Debt to Equity ratio (0.37) than 60.80% of its industry peers.
Although CLS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | 7.01 |
ROIC/WACC2.56
WACC8.34%
2.3 Liquidity
A Current Ratio of 1.47 indicates that CLS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.47, CLS is not doing good in the industry: 75.20% of the companies in the same industry are doing better.
CLS has a Quick Ratio of 1.47. This is a bad value and indicates that CLS is not financially healthy enough and could expect problems in meeting its short term obligations.
CLS has a Quick ratio of 0.88. This is amonst the worse of the industry: CLS underperforms 84.80% of its industry peers.
The current and quick ratio evaluation for CLS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 47.90% over the past year.
CLS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.11% yearly.
CLS shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.09%.
The Revenue has been growing by 10.38% on average over the past years. This is quite good.
EPS 1Y (TTM)47.9%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%51.92%
Revenue 1Y (TTM)22.09%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%27.79%
3.2 Future
CLS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.14% yearly.
The Revenue is expected to grow by 27.74% on average over the next years. This is a very strong growth
EPS Next Y53.05%
EPS Next 2Y46.37%
EPS Next 3Y43.28%
EPS Next 5Y38.14%
Revenue Next Year26.52%
Revenue Next 2Y29.69%
Revenue Next 3Y30.76%
Revenue Next 5Y27.74%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 57.25, which means the current valuation is very expensive for CLS.
Compared to the rest of the industry, the Price/Earnings ratio of CLS is on the same level as its industry peers.
CLS is valuated expensively when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 35.99, which means the current valuation is very expensive for CLS.
The rest of the industry has a similar Price/Forward Earnings ratio as CLS.
The average S&P500 Price/Forward Earnings ratio is at 23.92. CLS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.25 | ||
| Fwd PE | 35.99 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CLS.
The rest of the industry has a similar Price/Free Cash Flow ratio as CLS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 87.33 | ||
| EV/EBITDA | 35.63 |
4.3 Compensation for Growth
CLS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CLS may justify a higher PE ratio.
A more expensive valuation may be justified as CLS's earnings are expected to grow with 43.27% in the coming years.
PEG (NY)1.08
PEG (5Y)1.19
EPS Next 2Y46.37%
EPS Next 3Y43.28%
5. Dividend
5.1 Amount
No dividends for CLS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
302.3
+13.7 (+4.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners73.66%
Inst Owner Change0.1%
Ins Owners0.59%
Ins Owner Change11.53%
Market Cap34.78B
Revenue(TTM)11.28B
Net Income(TTM)716.70M
Analysts81.11
Price Target249.46 (-17.48%)
Short Float %3.05%
Short Ratio1.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.15%
Min EPS beat(2)6.6%
Max EPS beat(2)11.71%
EPS beat(4)4
Avg EPS beat(4)6.73%
Min EPS beat(4)1.95%
Max EPS beat(4)11.71%
EPS beat(8)8
Avg EPS beat(8)9.68%
EPS beat(12)12
Avg EPS beat(12)8.66%
EPS beat(16)16
Avg EPS beat(16)9.16%
Revenue beat(2)2
Avg Revenue beat(2)6.2%
Min Revenue beat(2)5%
Max Revenue beat(2)7.4%
Revenue beat(4)3
Avg Revenue beat(4)3.54%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)7.4%
Revenue beat(8)7
Avg Revenue beat(8)3.49%
Revenue beat(12)11
Avg Revenue beat(12)3.14%
Revenue beat(16)14
Avg Revenue beat(16)3.37%
PT rev (1m)0.05%
PT rev (3m)54.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)19.76%
EPS NY rev (1m)0%
EPS NY rev (3m)8.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)14.35%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)5.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.25 | ||
| Fwd PE | 35.99 | ||
| P/S | 3.08 | ||
| P/FCF | 87.33 | ||
| P/OCF | 62.97 | ||
| P/B | 17.14 | ||
| P/tB | 24.62 | ||
| EV/EBITDA | 35.63 |
EPS(TTM)5.28
EY1.75%
EPS(NY)8.4
Fwd EY2.78%
FCF(TTM)3.46
FCFY1.15%
OCF(TTM)4.8
OCFY1.59%
SpS98.07
BVpS17.63
TBVpS12.28
PEG (NY)1.08
PEG (5Y)1.19
Graham Number45.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.85% | ||
| ROE | 35.33% | ||
| ROCE | 26.62% | ||
| ROIC | 21.33% | ||
| ROICexc | 23.67% | ||
| ROICexgc | 30.35% | ||
| OM | 7.33% | ||
| PM (TTM) | 6.35% | ||
| GM | 12.04% | ||
| FCFM | 3.53% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
ROICexc(3y)13.32%
ROICexc(5y)10.55%
ROICexgc(3y)18.44%
ROICexgc(5y)14.81%
ROCE(3y)14.26%
ROCE(5y)11.14%
ROICexgc growth 3Y31.4%
ROICexgc growth 5Y28.76%
ROICexc growth 3Y37.65%
ROICexc growth 5Y29.81%
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
F-Score7
Asset Turnover1.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.97 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 94.54% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 15.59 | ||
| Cash Conversion | 55.82% | ||
| Profit Quality | 55.56% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 7.01 |
F-Score7
WACC8.34%
ROIC/WACC2.56
Cap/Depr(3y)94.48%
Cap/Depr(5y)73.42%
Cap/Sales(3y)1.62%
Cap/Sales(5y)1.34%
Profit Quality(3y)94.3%
Profit Quality(5y)151.44%
High Growth Momentum
Growth
EPS 1Y (TTM)47.9%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%51.92%
EPS Next Y53.05%
EPS Next 2Y46.37%
EPS Next 3Y43.28%
EPS Next 5Y38.14%
Revenue 1Y (TTM)22.09%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%27.79%
Revenue Next Year26.52%
Revenue Next 2Y29.69%
Revenue Next 3Y30.76%
Revenue Next 5Y27.74%
EBIT growth 1Y62.33%
EBIT growth 3Y48.65%
EBIT growth 5Y42.42%
EBIT Next Year67.79%
EBIT Next 3Y43.39%
EBIT Next 5Y38.43%
FCF growth 1Y48.75%
FCF growth 3Y20.17%
FCF growth 5Y2.76%
OCF growth 1Y40.82%
OCF growth 3Y27.84%
OCF growth 5Y6.55%
CELESTICA INC / CLS FAQ
Can you provide the ChartMill fundamental rating for CELESTICA INC?
ChartMill assigns a fundamental rating of 7 / 10 to CLS.
What is the valuation status of CELESTICA INC (CLS) stock?
ChartMill assigns a valuation rating of 4 / 10 to CELESTICA INC (CLS). This can be considered as Fairly Valued.
What is the profitability of CLS stock?
CELESTICA INC (CLS) has a profitability rating of 8 / 10.
What is the valuation of CELESTICA INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CELESTICA INC (CLS) is 57.25 and the Price/Book (PB) ratio is 17.14.
How financially healthy is CELESTICA INC?
The financial health rating of CELESTICA INC (CLS) is 7 / 10.